[Federal Register Volume 68, Number 112 (Wednesday, June 11, 2003)]
[Notices]
[Pages 35030-35032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14641]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47974; File No. SR-Amex-2003-57]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the American Stock Exchange 
LLC To Extend the Suspension of Transaction Charges for Certain iShares 
Funds

June 4, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on June 2, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Amex proposes to extend until June 30, 2003 the suspension of 
Exchange transaction charges for specialist, Registered Trader, and 
broker-dealer orders for the iShares Lehman 1-3 year Treasury Bond Fund 
and the iShares Lehman 7-10 year Treasury Bond Fund. Proposed new 
language is italicized; proposed deletions are in [brackets].
* * * * *

Amex Equity Fee Schedule

I. Transaction Charges

    No change.

II. Regulatory Fee

    No Change.
    Notes:
    1. and 2. No change.
    3. Customer transaction charges for the following Portfolio 
Depositary Receipts, Index Fund Shares, and Trust Issued Receipts have 
been suspended:

DIA-DIAMONDS[reg]                           BHH-B2B Internet HOLDRsTM
QQQ --Nasdaq--100[reg] Index Tracking       BBH-Biotech HOLDRs
 Stock
 SPY--SPDRs[reg]                            BDH--Broadband HOLDRs

[[Page 35031]]

 
IVV--iShares S&P 500                        EKH--Europe 2001 HOLDRs
MDY--MidCap SPDRs                           IAH--Internet Architecture
                                             HOLDRs
XLY--Select Sector SPDR--Consumer           HHH--Internet HOLDRs
 Discretionary
                                            IIH--Internet Infrastructure
                                             HOLDRs
XLP--Select Sector SPDR--Consumer Staples   MKH--Market 2000+HOLDRs
XLE--Select Sector SPDR--Energy             OIH--Oil Service HOLDRs
XLF--Select Sector SPDR--Financial          PPH--Pharmaceutical HOLDRs
XLV--Select Sector SPDR--Health Care        RKH--Regional Bank HOLDRs
XLI--Select Sector SPDR--Industrial         RTH--Retail HOLDRs
XLB--Select Sector SPDR--Materials          SMH--Semiconductor HOLDRs
XLK--Select Sector SPDR--Technology         SWH--Software HOLDRs
XLU--Select Sector SPDR--Utilities          TTH--Telecom HOLDRs
                                            UTH--Utilities HOLDRs
                                            WMH--Wireless HOLDRs
                                            SHY--iShares Lehman 1-3 Year
                                             Treasury Bond Fund
                                            IEF--iShares Lehman 7-10
                                             Year Treasury Bond Fund
                                            TLT--iShares Lehman 20+ Year
                                             Treasury Bond Fund
                                            LQD--IShaores GS $ InvesTop
                                             Corporate Bond Fund
                                            [TFT--Treasury 1 FITR ETF
                                            TOU--Treasury 2 FITR ETF
                                            TFI--Treasury 5 FITR ETF
                                            TTE--Treasury 10 FITR ETF]
 

    Customer transaction charges for the iShares S&P 100 Index Fund are 
$.0015 per share ($.15 per 100 shares), capped at $100 per trade.
    Until [May 31] June 30, 2003, transaction charges also have been 
suspended in SHY[,] and IEF[,] [TFT, TOU, TFI and TTE] for specialist, 
Registered Trader and broker dealer orders.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Amex included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is extending until June 30, 2003 the suspension of 
transaction charges in iShares Lehman 1-3 year Treasury Bond Fund 
(Symbol: SHY) and iShares Lehman 7-10 year Treasury Bond Fund (Symbol: 
IEF) for specialist, Registered Trader and broker-dealer orders. The 
Exchange previously filed a suspension of such charges until November 
30, 2002,\3\ December 31, 2002,\4\ January 31, 2003,\5\ February 28, 
2003,\6\ March 31, 2003,\7\ April 30, 2003,\8\ and May 31, 2003.\9\
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    \3\ See Securities Exchange Act Release No. 46765 (November 1, 
2002), 67 FR 68893 (November 13, 2002) (SR-Amex-2002-91).
    \4\ See Securities Exchange Act Release No. 46996 (December 13, 
2002), 67 FR 78264 (December 23, 2002) (SR-Amex-2002-98).
    \5\ See Securities Exchange Act Release No. 47141 (January 8, 
2003), 68 FR 2090 (January 15, 2003) (SR-Amex-2002-115).
    \6\ See Securities Exchange Act Release No. 47361 (February 13, 
2003), 68 FR 8534 (February 21, 2003) (SR-Amex-2003-04).
    \7\ See Securities Exchange Act Release No. 47455 (March 6, 
2003), 68 FR 12111 (March 13, 2003) (SR-Amex-2003-15).
    \8\ See Securities Exchange Act Release No. 47668 (April 11, 
2003), 68 FR 19241 (April 18, 2003) (SR-Amex 2003-22).
    \9\ See Securities Exchange Act Release No. 47858 (May 14, 
2003), 68 FR 27872 (May 21, 2003) (SR-Amex 2003-40).
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    The fee suspension contained in the previous filings also applied 
to transactions in four Treasury FITR ETFs--the Treasury 10 FITR ETF 
(Symbol: TTE); Treasury 5 FITR ETF (Symbol: TFI); Treasury 2 FITR ETF 
(Symbol: TOU); and Treasury 1 FITR ETF (Symbol: TFT). The ETF Advisors 
Trust determined to liquidate the portfolios of these funds on or about 
May 27, 2003. Trading in these ETFs was halted on the Exchange on May 
22, 2003, and they are no longer listed or traded on the Exchange. The 
amendment to the fee schedule, therefore, deletes reference to these 
funds.
    The Exchange believes that a suspension of fees for the SHY and IEF 
is appropriate to enhance the competitiveness of executions in these 
securities on the Amex. The Exchange will reassess the fee suspension 
as appropriate, and will file any modification to the fee suspension 
with the Commission pursuant to section 19(b)(3)(A) of the 1934 
Act.\10\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \11\ in general, and furthers the 
objectives of section 6(b)(4)\12\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) \13\ thereunder because the 
proposal: (i) Does not significantly affect the protection of investors 
or the public interest; (ii) does not impose any significant burden on 
competition; and (iii) does not become operative prior to 30 days after 
the date of filing or such shorter time as the Commission may designate 
if consistent with the protection of investors and the public interest; 
provided that the Exchange has given the Commission notice of its

[[Page 35032]]

intent to file the proposed rule change, along with a brief description 
and text of the proposed rule change, at least five business days prior 
to the date of filing of the proposed rule change, or such shorter time 
as designated by the Commission. At any time within 60 days of the 
filing of such proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors or otherwise in furtherance of the purposes of 
the Act.
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    \13\ 17 CFR 240.19b-4(f)(6).
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    The Amex has requested that the Commission waive the five-day pre-
filing notice and the 30-day operative delay. The Commission believes 
that waiving the five-day pre-filing notice and the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. The Commission notes that fee suspensions for the exchange-
traded funds that are the subject of this filing have been previously 
filed with the Commission.\14\ Further, extension of the fee suspension 
for specialist, Registered Trader, and broker-dealer orders will permit 
the fee suspensions to continue uninterrupted. For these reasons, the 
Commission designates the proposal to be effective and operative upon 
filing with the Commission.\15\
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    \14\ See supra notes 3-9.
    \15\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying at the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-Amex-2003-57 and 
should be submitted by July 2, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-14641 Filed 6-10-03; 8:45 am]
BILLING CODE 8010-01-P